i)business entity:state that every economic unit regardless of it legal form is treated as separate entity from its owners

ii)going concern:it assumes that the business unit will operate in perpetuity

iii)matching concept:holds that for any accounting period they earned reveune and the incomed cost must be matched and reported for the period

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4a)

i) error of omission

ii ) error of original entry

iii ) compensating error

iv) error of original entry

v ) error of commission

vi) error of complete reversal of entry

vii) error of commission

viii ) error of omission

ix) error of principle

x ) error of complet reversal of entry

4b)

i) error

ii ) credit transfer

iii ) standing order

iv) uncredited cheque

v ) dishonoured cheque

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part II answer 3 Questions only

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6a)

adamu cash book adjusted as at 31st march

1990

Tablulate N

Balance b/f 14415

credit transfer 3500

=17915

balance b/d 9595

Tabulate N

Bank charges 145

standing order 4525

dishonoured cheque 3650

balance c /d 9595

=17915

6b)

bank reconciliation statement N

balance as per ajusted cash book =9595

add unpresented cheque =11390

=20985

less uncredited cheque =( 4160 )

balance as per bank statement =16825

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8)

tabulate

manufacturing, trading, profit and loss account

for the year 31st dec 2001

stock =5064

purchase = 38000

carriage = 520

=43, 584

less stock =( 7138 ) /36446

manuf wagies =33850 /70 , 296

factory exp =2180

exp:p/m = 2800

wip -tp = 630

wip -cl =( 750 )

fuel = 2100

maintenace = 9450

lighting =4500

salaries =3700

insurance =3000 /97 , 906

cost of prod =97906

sales 185 , 600

stock =8216

cost of prod =97906 /106, 122

stock =( 9864 ) /96258

cross profit =89342 /185 , 600

c =ross profit 89342

off rent =1050

dep-M /V =800

advert =410

runing exp =1350

commission =690

lighting =3000

salaries =2300

insurance =1500

net profit =78242 /89342

total 89342

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9a)

tabulate

straight line method

dep= 1000000 -400000 /4 =150000

year | 1| 2| 3 | 4|

cost| 1000000 | 850000 | 700000 | 550000 |

dep| 150, 000| 15000 | 15000 | 15000 |

Ac dep | 150000 | 300000 | 450000 | 600000 |

NBV| 850000 | 700000 | 550000 | 400000 |

9b)

tabulate

reducing balance method

year | 1| 2| 3 | 4|

cost| 1000000 | 795000 | 632025 | 502460 |

dep( 20 .5% )| 205000 | 162975 | 129565 | 103004 |

Ac Dep| 205000 | 367975 | 497540 | 600544 |

NBV| 795000 | 632025 | 502460 | 399456 |

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